Financial package to clear DESU dues gets Cabinet nod

NEW DELHI: The government today approved a financial assistance package including loans worth Rs 3,326.39 crore for the Delhi government to clear dues of erstwhile statutory body Delhi Electric Supply Undertaking.

The central government has also decided to write off DESU dues of Rs 9,438.05 crore, according to an official release.

As a Non-Plan assistance, a loan of Rs 3,264.79 crore would be given to the government of National Capital Territory of Delhi for making payment to four central PSU -- NTPC, NHPC, Power Grid Corp and Nuclear Power Corp.

Besides, loan worth Rs 61.60 crore would be extended for making payment to the Railways.

The release said the central government would write off "DESU period dues amounting to Rs 9,438.05 crore in respect of Badarpur Thermal Power Station (BTPS) - Rs 2,702.45 crore as principal amount and Rs 6,735.6 crore as interest".

A decision regarding the financial assistance to DESU was taken at a meeting of the Cabinet today. The Finance Ministry would decide terms and conditions of the loans.

A statutory body, DESU was responsible for generation, transmission and distribution of electricity in Delhi. It was set up under the Delhi Municipal Corporation Act, 1957.

In February 1997, DESU was transferred to the Delhi Vidyut Board (DVB), which was unbundled into separate generation, transmission, distribution and holding companies.

"At the time of transfer of business from DESU to DVB, the principal amount payable by DESU to the four CPSUs - namely NTPC Ltd, NHPC Ltd, PGCIL, NPCIL, BTPS then owned by the Government of India (GOI) and Railways, amounted to Rs 3,855.95 crore which remains unpaid till date.

"The total outstanding dues along with interest in respect of CPSUs & BTPS is Rs 12,764.44 crore as on 31.12.2011," the release said.